I understand that a share of stock represents a share of ownership in a company. But if dividends are not paid, what is the actual value of that stock? Why does it have value? The company making more money does not flow to me because I own the stock. So is it basically just like owning a baseball card in that if the player (company) does well more people want to collect (own) their cards (stock) and this the price goes up?
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Companies pay employees with shares. In order to do so, the company must occasionally buy them back. If the company is doing well financially, they have more money to buy them back, and thus, the market demands a higher price for them.
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